Hello London and anyone still up and about in Australia and the southern hemisphere.
To follow on from yesterdays post about the weeks outlook I want to show you a trade I took on GBPJPY that is still active and without any targets hit yet. The reason I want to show you is because I want to make a point as to how important it is to do a "big picture" scan at least once a week. As you all saw from my last blog I didn't have a great deal to say about GBPJPY other than short pull backs on daily. That is because it is in such a nice trend and any pull backs to the sell zone would get my attention.
Well today I saw a small red candle forming in the sell zone on the 8 hour chart and decided to wait until 3pm to check again to see if this candle was still small and the trade still valid. It was and so I took it short.
I like the rejection of the daily resistance as well.
So that was the set up I took and I am currently short.
There was another opportunity to sell GBPJPY on more of an intra day trade. A nice pullback into old support/resistance that was also a big number 129.00 with the daily and weekly pivot points clustering also with the 50% fib level. I did not take this trade as I am already short.
The reason I have put this post up is not for the trade itself it is to show that doing a scan is important and that would you miss a trade that you should remain patient because often another set up will come. You can not teach patience and as I have learnt and am still learning it is one of the most important things to have when it comes to trading.
Now the trade I am in has not hit any targets yet and may not at all but because I have followed my strategy and my weekly review I am happy to be in it and it does not worry me the outcome of the trade because I have already done my job as a trader.
I hope this helps fellow students of the market and good luck today.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I am short GBPJPY